I. A. Problem 13 - 6 Co-partnership with Net Loss M, a partner of a commercial partnership, showed the following income and losses: Net income from trading business - as sole proprietor. Share from the net loss of the partnership P500,000 200,000 How much is the net taxable income of M? a P720,000 b P450,000 C P300,000 d P250,000
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- nment/takeAssignmentMain.do?invoker3&takeAssignmentSessionLocator=&inprogress3false Regarding a partnership, which of the following statements is/are always correct? If a partnership is an active trade or business and it has a $65,000 loss from its business operations that is passed-through as an active loss to its partners, each active partner can deduct his full share of loss for the year to the extent they have basis that is at-risk. I. II. Salaries and bonuses paid to partner-employees (other than guaranteed payments) are a deductible business expense. Oa, Only statement II is correct. Ob. Only statement I is correct. Oc. Both statements are correct. Od. None of these statements are correct. Previous Nextdeveloped in part a(3). etd 189fc64d53a0a6a71 PROBLEM C.11 Dividing Partnership Profit and LossLOC-10 Rothchild Furnishings, Inc., has three partners-Axle, Brandt, and Conrad. At the beginning of the current year their capital balances were: Axle, $180,000; Brandt, $140,000; and Conrad, $80,000. The partnership agreement provides that partners shall receive salary allowances as follows: Axle, $10,000; Brandt, $50,000; and Conrad, $28,000. The partners shall also be allowed 12 percent interest annually on their capital balances. Residual profit or loss is to be divided: Axle, one-half; Brandt, one-third; and Conrad, one-sixth. Instructions Prepare separate schedules showing how income will be divided among the three partners in each of the following cases. The figure given in each case is the annual partnership net income or loss to be allocated among the partners. Round calculations to the nearest dollar. a. Income of $526,000. b. Income of $95,000. c. Loss of $32,000. PROBLEM C.12 Who…Requirement: Compute for the respective shares of the partners in | shared equally, while losses on a 70:30 ratio. The partnership PROBLEM 3: EXERCISES 1. Partners A and B share in profits and los es on a 70:30 ratio after salaries of P80,000 for A and P40,000 or B. The business earned profit of P180,000 before deduction or the salaries. Requirements: a. Compute for the partners' respective share in the profit. b. Provide the journal entries (the salar are withdrawn periodically). for annual salary 2. A and B's partnership agreement provi allowances of P160,000 for A and P80, for B. Profits are earned profit of P200,000. Reguirement: Compute for the respective shares of the partners in the profit.
- The partnership of Irdina and Irfan commenced on 1 April 2013 and accounts are prepared to 31 December annually. The partnership agreement provided for the following: i. Interest on capital is 10% per annum for each partner. Irdina's capital contribution Irfan's capital contribution RM70,000 RM105,000 ii. Salary Irdina RM2,000 per month. RM2,500 per month Irfan Share of divisible income/(loss) Irdina 2/5 Irfan 3/5 On 30* September 2014, Irdina left the partnership and withdrew her accumulated capital and profits up to that date. On 1 October 2014, Iftina joined the partnership and the new partnership provided the following: i. Interest on capital is 10% per annum for each partner. Irfan's capital contribution Iftina's capital contribution RM100,000 RM100,000 ii. Salary Irfan RM2,500 per month Iftina RM2,500 per month B.8. In case the partnership makes profit, how will an industrial partner be given a share?A. what is just equitableB. equallyC. arbitrarilyD. proportion to capital contribution 9. Which of the following is not considered a legitimate expense of a partnership?A. Supplies used in the partnership’s officeB. Depreciation on assets contributed to the partnership by partnersC. Salaries for management hired to run the business D. Interest paid to partners based on their capital balancesAccounting for Special Transactions - PARTNERSHIP OPERATIONS 1. Partners A and B share in profts and losses on a 70;30 ratio after salaries of P80,000 for A and P40,000 for B. The business earned profit of P180,000 before deduction for the salaries. Requirements: a. Compute for the partner's respective share in the profit. b. Provide the journal entries (the salaries are withdrawn periodically) 2. A and B's partnership agreement provided for annual salary allowances of P160,000 for and P80,000 for B. Profits are shared equally, while losses on a 70;30 ratio. The partnership earned profit of P200,000. Requirement: Compute for the respective shares of the partners in the profit.
- QUESTION 23. * X, Y; and Z were in partnership sharing profits or losses as follows; X 0.40, Y 0.35 and Z 0.25 Statement of financial position as at 31/12/2011 TZS “000" Non current assets Premises 37,500 Plant & Machinery ( note 1) 26,000 63,500 Current assets Inventory 21,000 14,000 33,500 68,500 Debtors Bank Total assets 132,000 Capital and liabilities Capital accounts 45,000 25,000 X Y 15,000 85,000 Current accounts 6,000 4,000 Y 3,000 Loan: Y 15,000 Creditors 19,000 47,000 Total capitals and liabilities 132,000 Y retired on 31/12/2011 and X and Z continues in partnership sharing or losses 0.6 and 0.4 respectively. Half of Y' S loan was repaid on 1/1/2012 and it was also agreed that TZS 40,000,000 of the balance remaining due to him should remain as a loan to the partnership It was also agreed that adjustments were to made to the statement of financial position on 31/12/2011 in respect of the following. v a) Plan & machinery was revalued at TZS 29,000,000 and premise also revalued…B. The ABC Partnership has the following information when B, a partner became incapacitated: Exercise No. 2 Capital interest of the disassociating partner: Profit and loss sharing ratio is based on capital contribution Actual capital or investment to the business before disassociation Withdrawals or drawings Share in the net loss as of date of disassociation Loans to the partnership Sold to partners Sold to outsider Sold to partnership B C 50,000 100,000 150,000 30,000 3,000 6,000 10,000 20,000 1,000 2,000 4,000 100,000 2,000 100,000 100,000 3. Show the computation of capital interest as of date of disassociation a. Compute for the capital interest of A b. Compute for the capital interest of B c. Compute for the capital interest of C 4. Compute for the asset revaluation a. If B's agent sells his share to an outsider b. If B 's agent sells his share to B and C, B paid for the 30% and C the remaining 70%. C. If B's agent sells his share to ABC Partnership_______ If the amount of liabilities is P165,000 and the percentage of owner’s claim in the total partnership assets is 45%, the partnership’s total asset would be a. P200,000 c. P 366,667 b. P 300,000 d. P 255,750
- The A and B partnership agreement provides for A to receive a 20% bonus on profits before the bonus. Remaining profits and losses are divided between A and B in the ratio of 2:3, respectively. Which partner has a greater advantage when the partnership has a profit or when it has a loss? Profit Loss Profit Loss а. А b. A с. В d. B BA BAIn a partnership ABC, engaged in the flowershop business, the liabilities of the partners are as follows: A – P20, 0000 B – P50, 000 C – P30, 000.i. Can B engage in the same business? Why or why not? ii. How shall any profit and loss be divided among the partners? iii. Suppose D is an industrial partner. What shall be his share?A partnership has the following accounting amounts: Sales Cost of Goods Sold General and Administrative Expenses Distribution costs Interest paid to banks Salary allowances to partners Partners' withdrawals 150,000 80,000 17,000 52,000 23,000 12,000 18,000 Compute the Partnership's net income (loss). Encode as a negative amount if the answer is a loss.